Q&A with WBCSD about Improving Non-Financial Reporting Presenters: Heather Esper, Program Manager for Impact Assessment- WDI Kitrhona Cerri, Social

Transcription

1 Q&A with WBCSD about Improving Non-Financial Reporting Presenters: Heather Esper, Program Manager for Impact Assessment- WDI Kitrhona Cerri, Social Capital Manager - WBCSD This webinar is part of a ongoing series The Power of Poverty Assessment

2 Redefining Value William Davidson Institute Webinar Series 30 September 2014 Kitrhona Cerri Manager, Redefining Value Social Capital

3 Overview About the World Business Council for Sustainable Development (WBCSD) Measuring Social Impact: the business journey The next frontier: linking up Measurement, Valuation, and Corporate Reporting

4 About us: The World Business Council for Sustainable Development CEO-led, global coalition of some 200 companies advocating for progress on sustainable development 35 countries, 22 industry sectors US$6tn: members aggregate market capitalization 15m employees in WBCSD member companies

5 Global Network of national business councils 65+ partners around the world

6 Companies are increasingly motivated to measuring their socio-economic impacts Fulfilment of commitments and expectations Explanation of contribution to public policy goals Indicators on performance, stability, capacity for growth within value chain Understand needs, aspirations, resources, and incentives of customers

7 Business perspective The Initial Challenge: Merging two perspectives Development perspective Business activity Direct impacts Indirect impacts Broader development contribution Infrastructure Products and Services Jobs Skills and Training Procurement Taxes Corporate Governance Environmental Management Economic Growth Poverty Alleviation Education Social Stability Public Health Human Rights Governance Capacity Building Enterprise Development Environmental Sustainability

8 Measuring Impact Framework ( ) The business case Methodology Online application

9 The Challenge of Momentum: Navigating a busy landscape Many resources are now available, however: - Diversity in tools - Based on different assumptions - Offering different functionality - Focusing on different types of impact - Suiting different purposes Ref:

10 Measuring Socio-economic Impact: A guide for business (2013) The business case The essentials The tools The road ahead Outlines business motivations for measuring socioeconomic impact Introduces the terminology and basic theory used in this space for a business audience Profiles a selection of 10 publicly available tools tailored for business needs Suggests areas of focus to accelerate business efforts to measure and manage socioeconomic impact

11 Long-term vision True cost, True value management Financial Capital Business Management Traditional management Natural Capital Social Capital

12 Business Solutions Transformation Needed ACTION2020 PRIORITY AREAS TO REACH SOCIETAL MUST-HAVES Today Improve Business Case

13 The UN Global Compact-Accenture CEO study on Sustainability 2013 shows that CEO s recognize the sustainability challenge, but grapple with measuring and valuing their activities Sustainability is perceived to be very important by CEOs: 93% believe that sustainability will be important to the future success of their business. 80% view sustainability as a route to competitive advantage However CEOs find sustainability difficult to implement & quantify: 38% believe they can accurately quantify the value of their sustainability efforts. 37% see the lack of a link to business value as a barrier to accelerating progress. Just one third of CEOs running public companies believe their share price currently includes value directly attributable to sustainability initiatives and performance.

14 Reporting as a driver for integrating sustainability And more

15 Components of a managing and reporting landscape Function Existing systems Developing systems External reporting (for comparability and public accountability) Financial reporting Integrated reporting GAAP Social & Environmental Accounting Principles Internal management (including decision making) Management accounts e.g. Environmental / Social Profit & Loss Accounts Measurement tools and methodologies Double Entry ERP systems Methods e.g. LCA, CEV, GHG protocol, IRIS etc. Measures and data Inputs Outputs Outcomes Impacts

16 Redefining Value Objective Accelerate progress to a world where more sustainable companies are recognized and rewarded, and therefore are more successful. Integrate social and environmental impacts and dependencies into corporate performance management. Improve the effectiveness of non-financial internal and external reporting. Reflect the true value of a company and disclose true profit and true cost. 16

17 Journey towards 2050 Education, capacity building & exchange Redefining Value program structure True value, true cost, true profit in corporate decision-making and reporting Natural Capital Natural Capital Protocol Implementing better Reporting Social Capital Social Capital Protocol Changing the rules of the game Solid foundation to redefine value

18 Natural and Social Capital Protocol Components Harmonized measurement and valuation approaches required by business for integrated performance management and decision-making. Top-down Elements Protocol Frameworks Purpose > Principles > Scope & boundaries > Overview of Components Practical Methodologies & Guidelines Metrics & Data Approaches to measurement & valuation, e.g. S P&L; E P&L; others Key Performance Indicators > Units of Measurement, incl. from SASB; GRI Bottom-up Elements Measurement & Valuation of Action 2020 Priority Areas Minimum standards > best practice > methodologies > KPIs Sector Initiatives standardized metrics / methodologies by sector e.g.: Human Rights Skills & Employment Inclusive Business Rural Livelihoods Sustainable Lifestyles Climate & Energy Water Ecosystems & Land Use Chemicals Forests Mobility Cement 18

19 Access WBCSD materials on social impact measurement: Thank you! Kitrhona Cerri Manager, Redefining Value - Social Capital cerri@wbcsd.org Access other WBCSD tools: WBCSD tool box 19

20 Contact information WDI Contact Information Heather Esper: or Yaquta Kanchwala Fatehi: Sandra Draheim: or Link to Current Webinar Series The Power of Poverty Assessment: Link to Past Webinar Series Assessing Multidimensional Poverty Impacts: 20